Angle Protocol’s Borrowing Module Goes Live on Polygon

Polygon Labs

July 11, 2022

Polygon has become the second blockchain network — after Ethereum (ETH) — to deploy Angle Protocol’s Borrowing Module, allowing users to get Euro-pegged agEUR stablecoins for just a fraction of the usual transaction costs.

Angle is a capital-efficient, decentralized, and over-collateralized stablecoin protocol that aims to create a sustainable, permissionless, and uncensorable money layer for decentralized finance (DeFi) blockchains. The platform currently issues agEUR, a highly liquid stablecoin backed by fiat Euro.

Last November, Polygon became the first chain after Ethereum on which agEUR was made available via the Proof-of-Stake bridge. Over the past months, the stablecoin saw significant demand and was also integrated on numerous platforms in the Polygon ecosystem, including Aave, Curve, Uniswap, Quickswap, Superfluid, and Market.xyz.

As agEUR adoption keeps growing across DeFi, Angle has recently introduced a new minting protocol, dubbed “Borrowing module.” Initially launched only on Ethereum, the module is now natively deployed on Polygon as well.

Following the integration, users can get agEUR directly on Polygon without interacting with the Ethereum mainnet. Namely, the module allows users to borrow agEUR for 0.5% against wrapped Ethereum (wETH), USDC, or MATIC.

Additionally, Angle’s built-in leverage engine allows the corresponding transactions to become significantly cheaper than they would’ve been on Ethereum, offering borrowers the lowest fees on the market. Thanks to this, Angle was also able to lower the minimum permitted borrow amount to just 20 agEUR — as opposed to the minimum of 10,000 agEUR on Ethereum.

According to the developers, the module is also “a safe haven for borrowers” as users’ losses due to potential liquidations are minimized thanks to the Dutch auctions that power the protocol’s liquidation mechanism.

You can find more details about Angle’s Borrowing module and app in the project’s dedicated user guides. Tune into our blog for the latest from the Polygon ecosystem!